LaSalle buys first two assets for its UK PRS fund
LONDON (January 13, 2016) – LaSalle has completed the first two direct investments for its UK Private Residential Fund (“The Fund”). The assets in Leeds and London comprise 270 purpose-built residential units and were acquired in separate transactions for £55 million.
Managed by LaSalle’s highly experienced residential team, the LaSalle UK PRS Residential Fund aims to create a diversified national portfolio of residential market rental properties with a mix of income producing and new-build assets, focused on providing excellent levels of customer service. Within the next few years, LaSalle expects to invest in excess of £500 million in the residential build-to-rent market on behalf of its institutional clients, through the Fund and other investment vehicles.
Waterside Apartments in Leeds was acquired from CVI Leeds Waterside Sàrl for £25 million in an off-market transaction, representing a gross initial yield of 6.7 per cent. Completed in 2008, the purpose-built freehold residential block has two separate cores of 13 and 18 storeys with 183 one and two bedroom apartments and 72 parking spaces. It is located half a mile to the west of the city centre within walking distance of Leeds Railway Station.
LaSalle has also acquired 87 units within Phase Three of the Rathbone Market redevelopment in East London from English Cities Fund (“ECf”) through a forward commitment of £30 million, representing a gross initial yield of 5.2% per cent. The one and two bedroom apartments are situated in cores three and four of the larger 216 unit scheme, which is located less than half a mile from Canning Town DLR and Underground station. It is the final stage of the Rathbone Market regeneration project being delivered by Muse Developments through the ECf partnership and is expected to complete in Q4 2016.
Andrew Stanford, UK Residential Fund Manager, LaSalle, said: “The Fund’s first investments illustrate our commitment to acquiring high quality build-to-rent assets in markets where we anticipate strong demand. Waterside Apartments is a rare, large-scale income producing asset with ample opportunity to add value through proactive asset management, a compelling advantage of the Fund’s team. Meanwhile by committing to purchase build-to-rent units in Canning Town, we have bought into a large-scale regeneration project that will see this well-connected area of London transformed physically and economically making it a highly desirable place to live.”
LaSalle has been investing in the UK residential markets since 1999 and currently has around $5 billion of residential assets under management globally on behalf of institutional investors.
LaSalle was advised by JLL on Waterside Apartments and Rathbone Market.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $58 billion as of Q4 2017 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum. Past performance is not indicative of future results.